Due to its numerous resources, diverse climate, successful reforms, and an average growth rate of over nine percent for many years, China has become one of the most important production sites and markets for foreign investors. China has risen to become a serious player in the world economy and politics, solidifying its place among trading nations. However, the Chinese market presents German investors with a variety of challenges: the foreign culture, the difficult-to-assess mentality, the information jungle, the peculiar contractual relationships, and so on. Therefore, it is not hard to understand why engaging with the Chinese market remains fraught with risks for foreign companies, both in day-to-day operations and in the preparation for market entry in China.